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Council Provided Information - 10/9/2024MAYOR ERIN MENDENHALL rQy /a DANNY WALZ Executive Director Director _� fly 00811661 is REDEVELOPMENT AGENCY of SALT LAKE CITY REDEVELOPMENT AGENCY STAFF MEMO DATE: September 20, 2024 PREPARED BY: Tracy Tran, Senior Project Manager Austin Taylor, Project Manager RE: Sugar House Property Disposition to Salt Lake City Corporation REQUESTED ACTION: Consider approving a fully discounted land conveyance from the Redevelopment Agency of Salt Lake City ("RDA") to Salt Lake City Corporation ("City") via attached resolution. POLICY ITEM: BUDGET IMPACTS: Property Disposition N/A EXECUTIVE SUMMARY: In accordance with the Real Property Disposition Policy that was amended on March 23, 2021, property discounts greater than 10% of appraised fair market value are subject to approval by a majority vote of the RDA Board of Directors ("Board"). The RDA requests that the Board consider authorizing a fully discounted conveyance of portions of Tier 1 property located at approximately 2234 S Highland Drive and 1085 E Simpson Avenue ("Property") from the RDA to Salt Lake City ("City"). These approximately 1.6-acre parcels comprise the Sugar House Deseret Industries ("DI") and Fire Station properties, which are the last developable parcels the RDA owns within the Sugar House project area that expired in 2014. A portion of these properties along Simpson Avenue are proposed to be transferred to City right of way to accommodate the extension of the S-Line. If the land discount is approved, the RDA will transfer portions of the existing parcel ownership to the City as right of way. ANALYSIS & ISSUES: Pronertv Overview: The 1.6-acre assemblage is located at approximately 2234 S Highland Drive and 1085 E Simpson Avenue. The site currently includes three buildings: • The former Deseret Industries building (currently vacant) • The former Sugar House Fire Station (mostly vacant and partially used for storage); and • Maintenance shed (currently used by the City's Public Services team) Approximately 14,000 acres of RDA land along Simpson Avenue from parcels 16-20-252-001-0000, 16- 20-252-002-0000, 16-20-252-003-0000, and 16-20-252-008-0000 will be transferred to Salt Lake City as SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV • WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 • FAX 801-535-7245 right of way. Proiect Area: Sugar House Pronertv Tvpe: Tier 1—Salt Lake City used to own the former Sugar House Fire Station, which was transferred to the RDA in 2020. Purpose of Transfer: To provide additional right of way to the City to accommodate the eastern extension of the S-Line. Method of Disposition and Disnosition Price: The RDA's Real Property Disposition Policy does not include a process for dispositions to the City; as such, the transaction is being considered an exclusive negotiation with the City for a public use. Per the same policy, property discounts greater than 10% of appraised fair market value are subject to approval by a majority vote of the Board. The RDA requests that the Board consider authorizing a fully discounted conveyance of portions of the Property to the City as public right of way. Other Information Relevant to Disnosition of the Pronertv: In exchange for the S-Line extension requiring nearly 14,000 square feet of RDA property, a portion of Sugarmont Drive north of the Property is proposed to be closed and approximately 7,000 square feet of the land within Sugarmont Drive will be given to the RDA. The transfer of property from the City to RDA will follow requirements laid out in City Code 2.58 and will be handled through City Council. In addition, after research and discussions with various administrative staff in the City, it was determined that the closure of Sugarmont Drive and cleaning up of the parcel lines could be handled through a subdivision plat since there was no evidence that Sugarmont Drive was dedicated as a public right of way. Staff has notified abutting property owners of the pending closure. Estimated Timeline of Disnosition: The RDA estimates the schedule of disposition for the Property will be as follows: Subdivision Plat Process: Subdivision plat will clean up the existing parcel lines (6 months to 1 year) o Preliminary Plat: Application has been submitted to the City's Planning Division o Final Plat: Once project receives preliminary plat approval, RDA Staff will apply for final subdivision plat, and deeds will be executed with updated legal descriptions that align with final plat. Future Site Redevelonment: RDA staff will return with a pre -disposition report for the redevelopment of the remaining RDA property at a future date. 19 '7 VA [1141111,111i'71 [K/ll�Cs11 rIX61_ e)LIA • December 2020: The City conveyed the Sugar House Fire Station property located at approximately 1085 E Simpson Avenue to the RDA. • March 2022: Ordinance 7 of 2022 - City Council approved the rezone of the former Sugar House Fire Station properties from PL Public Lands to CSHBD 1 Sugar House Business District. • April 16, 2024: RDA, Transportation Division, and UTA staff updated the RDA Board on the S- Line Extension and the RDA -owned Sugar House properties. ATTACHMENTS: A. RDA -Owned Sugar House Properties B. RDA Property Transfer to Salt Lake City C. Resolution ATTACHMENT A: RDA -OWNED SUGAR HOUSE PROPERTIES i -4 O (0 m (w a� U n Q) 0 Q z PARLEY'S TRAIL (NIC) - - - - - - - - - - - � ® RDA PROPERTY FOR TRACKWAY = -8,520 sf or -0.20 acres RDA PROPERTY FOR SIDEWALK AND LANDSCAPE _ -5,377 sf or--0.12 acres ® SLC PROPERTY = -2,993 sf or -0.07 acres SLC ROAD/SIDEWALK PROPERTY =-17,605 sf or -0.40 acres i a IL— ATTACHMENT C: RESOLUTION